An April 2016 article by Hudson Sangree on the Sacramento Bee website shows Sacramento Area median home prices are back to 2004 levels. According to housing research firm Corelogic Analyst Andrew LePage “We’re roughly back to where we were before the sharpest part of the run-up”. I’m not sure 2004 is particularly noteworthy as it falls as some point during the runup, but neither the beginning nor the end of a tumultuous market swing.
But how far has the recovery come? I thought I would compile a sample list of homes built and sold in 2005 (and a couple in early 2006) at the market peak and sold again in April/May of 2016 to see a sampling of how ‘same house’ sales figures would compare. Meaning, I found specific houses that sold both in 2005 and again in 2016 and compared their selling prices. I’m not going to argue the statistical veracity of the change in value of 19 homes in Elk Grove, but it is interesting…and might have more relevance than median prices
The average recovery rate was 83% with a low of 72% and a high of 99%. This doesn’t factor in any improvements that may have been done to these properties (such as building a new pool or substantial landscaping).
I suppose it’s good news that we are approaching 2005 prices. This means that families who toughed it out for the past decade are close to having no equity. A significant improvement over the financially ruinous position of owning an ‘underwater’ home.